A machine with a cost of $130,000, accumulated depreciation of $85,000, and current year depreciation expense of $17,000 is sold for $40,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:
A) $5,000.
B) $17,000.
C) $40,000.
D) $28,000.
E) $45,000.

Question

Quizplus · Accepted Answer

The cash received from the sale of the machine, $40,000, is reported as a source of cash under cash flows from investing activities.

A Machine with a Cost of $130,000, Accumulated Depreciation of $85,000